Stay up-to-date with the latest developments in securities law through access to both news and all statutes and regulations. Find relevant corporate filings through a searchable EDGAR database. And...
An investment adviser misappropriated more than $9 million from a New Jersey-based charitable foundation funded by a philanthropist’s estate, spending the money on a Porsche, Rolls-Royce, and other “lavish” items, according to recently released court documents.
John Rogicki of Little Silver, N.J., Oct. 19 pleaded guilty in New York state court to first-degree grand larceny and money laundering in connection with the theft ( People v. Rogicki , N.Y. Sup. Ct., No. SCI-03960-2017, 10/19/17 ), according to the Manhattan District Attorney’s Office. He could spend up to seven and a half years in prison and pay $9.2 million in restitution and penalties, the DA’s office said.
Rogicki was named trustee of the Kurr Foundation after the death of 97-year-old philanthropist Sara Margaret Kurr Zock in 2001, according to court documents. Zock founded the charity to support educational causes, health organizations, and youth services.
He also served as the organization’s investment adviser and controlled its account at New York-based Train, Babcock Advisors LLC, where he was managing director.
A New York Times death notice for Zock described Rogicki as “her longtime friend, advisor and confidant.”
From about February 2009 to December 2016, Rogicki stole foundation money for personal expenses, including luxury cars, vacations, and properties in Manhattan, New Jersey, and Florida, the DA’s office said. Rogicki, who also was the executor of Zock’s estate, transferred money from the charity’s account at Train Babcock into the estate’s checking account, officials said. He then moved the cash into his personal bank accounts, according to authorities.
Rogicki left Train Babcock in January. The firm disclosed in an April SEC filing that it was “fully cooperating” with an agency investigation into Rogicki.
The Securities and Exchange Commission Oct. 19 filed related civil charges against Rogicki in the U.S. District Court for the Southern District of New York ( SEC v. Rogicki , S.D.N.Y., No. 1:17-cv-08071, 10/19/17 ). The agency seeks penalties and disgorgement with interest, as well as a permanent injunction, against him.
“Rogicki’s fraud and betrayal of his client’s trust were anathema to his legal obligations and responsibilities as an investment adviser,” the SEC’s complaint said.
New York lawyer David Liston, who is representing Rogicki, told Bloomberg Law his client “accepted full responsibility for his actions.”
“We think this is a sensible resolution of the matter and serves the interests of justice,” said Liston, a Lewis Baach Kaufmann Middlemiss PLLC partner.
Rogicki is the second adviser from Train Babcock charged with a million-dollar fraud in less than a year. Brian Keenan pleaded guilty in New York state court in December 2016 to stealing more than $1.6 million from the beneficiaries of three trusts he managed at the firm.
To contact the reporter on this story: Andrew Ramonas in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Phyllis Diamond at email@example.com
To view the the complaints and the DA's statement of facts, visit https://www.bloomberglaw.com//document/X1Q6NTOMKD82?documentName=1.pdf, http://src.bna.com/tyI, and http://src.bna.com/tyH.
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)